Today’s mortgage and refinance rates: June 23, 2022 | 30-year rates are well over 5%

The average 30-year fixed mortgage rate jumped to 5.78% last week, a significant increase from 5.23% the week prior. According to Freddie Mac, this is the largest one-week rate jump since 1987. Average 15-year fixed and 5/1 adjustable rates also experienced significant increases. 

The Federal Reserve met last week and voted to enact a 75 basis point, or 0.75%, increase to the federal funds rate. After the release of last week’s Consumer Price Index report, which showed inflation getting worse, markets began pricing in the likelihood that the central bank would vote for a larger than expected rate hike. This pushed mortgage rates up.

“With the Fed announcing a 75 basis point hike, the largest since 1994, we should expect continued volatility over the coming days and weeks, as the market continues to reprice and tries to settle in at these rate levels,” says Robert Heck, vice president of mortgage at Morty.

Rates might not continue to spike this drastically, but they will likely stay relatively high in 2022.

Mortgage rates today
Mortgage refinance rates today
Mortgage calculator

Use our free mortgage calculator to see how today’s mortgage rates will affect your monthly and long-term payments.

By plugging in different term lengths and interest rates, you’ll see how your monthly payment could change.

Are mortgage rates going up?

Mortgage rates started ticking up from historic lows in the second half of 2021, and may continue to increase throughout 2022. This is in part due to high levels of inflation and policy response to rising prices.

In the last 12 months, the Consumer Price Index rose by 8.6%. The Federal Reserve has been working to get inflation under control, and plans to increase the federal funds target rate four more times this year, following increases in March, May, and June.

Though …read more

Source:: Businessinsider

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